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Effects Of The Suspension Agreement: U.S.-Mexico Fresh Tomatoes Antidumping Case

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  • Jung, Jione

Abstract

This paper analyzes the effects of the suspension agreement of the U.S.-Mexico fresh tomatoes antidumping cases on U.S. consumers. A linear and dynamic version of an inverse almost ideal demand system is developed to estimate consumer behavior. The measure of consumer welfare – compensating and equivalent variations – is derived specifically for the inverse demand system. The variation of cross-price flexibilities obviously reduced since the minimum export price system came into effect, but consumer welfare does not seem to change much in the circumstance. The consumers’ budget share on domestic fresh tomatoes is likely to reduce and it suggests that the suspension agreement may not guarantee the profit of domestic producers either.

Suggested Citation

  • Jung, Jione, 2009. "Effects Of The Suspension Agreement: U.S.-Mexico Fresh Tomatoes Antidumping Case," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49285, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea09:49285
    DOI: 10.22004/ag.econ.49285
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    References listed on IDEAS

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    5. Kathy Baylis & Jeffrey M. Perloff, 2010. "Trade diversion from tomato suspension agreements," Canadian Journal of Economics, Canadian Economics Association, vol. 43(1), pages 127-151, February.
    6. Grant, Jason H. & Foster, Kenneth A., 2005. "An Inverse Almost Ideal Demand System of Fresh Tomatoes in the U.S," 2005 Annual meeting, July 24-27, Providence, RI 19193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Hicks, J. R., 1986. "A Revision of Demand Theory," OUP Catalogue, Oxford University Press, number 9780198285502.
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    9. Brown, Mark G & Lee, Jonq-Ying & Seale, James L, Jr, 1995. "A Family of Inverse Demand Systems and Choice of Functional Form," Empirical Economics, Springer, vol. 20(3), pages 519-530.
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    Cited by:

    1. Kosse, Elijah & Devadoss, Stephen, 2016. "Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252726, Southern Agricultural Economics Association.
    2. Li, Sheng & Wu, Feng & Guan, Zhengfei & Luo, Tianyuan, 2021. "How trade affects the US produce industry: the case of fresh tomatoes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), September.

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